INTERNATIONAL LITHIUM CORP. ("ILC")
BULLETIN TYPE: Property-Asset or Share Purchase Amending Agreement
BULLETIN DATE: May 7, 2014
TSX Venture Tier 2 Company
TSX Venture Exchange has accepted for filing a loan conversion and investment agreement (the "Amending Agreement") dated March 14, 2014 between International Lithium Corp. (the "Company") and GFL International Co. Ltd. ("GFL").
The purpose of the Amending Agreement was to amend certain terms of the Mariana Loan Agreement (May 3, 2013, as amended July 18, 2013) and the Loan Agreement (November 21, 2012, as amended July 18, 2013) between the Company and GFL. The effect of the provisions of the Amending Agreement is that GFL may earn up to an 80% interest in the Company's right in the Mariana Property, Argentina (the "Property"), and the parties will operate on an 80:20 joint venture basis.
The Amending Agreement provides for the following terms:
* The first loan advance under the Mariana Loan Agreement automatically converts into a 26% interest in the Property.
* The second loan advance under the Mariana Loan Agreement, once made on May 1, 2014, will automatically convert into a 25% interest in the Property.
* The Company will grant GFL an additional 10% interest in the Company's rights to the Property by GFL's payment of US$450,000 to the Company within 15 days of GFL's receipt of shareholder approval of the Amending Agreement.
* The non-convertible $1,000,000 portion of the Loan Agreement may (instead of repayment by the Company) be converted by GFL into a 19% interest in the Company's rights in the Property.
* The due date of the convertible $1,000,000 portion of the Loan Agreement is extended to December 19, 2015.
* The Company retains a back-in right to buy back a 10% participating interest in the Property.
* GFL agree to provide an exploration loan to the Company for up to $2,000,000 to cover the Company's required contribution to the joint venture.
The transaction is non-arm's length.
Further details may be found in the Company's news releases dated March 19, 2014 and April 4, 2014.
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